Knowledge management processes, innovation capability and organizational performance

Abstract

PurposeThe purpose of this study is to introduce a unified framework which integrates knowledge management processes (knowledge creation, sharing, storage and documentation and acquisition), innovation capability (product, process, marketing and organizational and organizational performance (operational, financial and product quality). Then empirically test the effect of knowledge management processes (KMP) on innovation capability (IC), the effect of IC on organizational performance (OP) and the impact of KMP on OP through the mediator (IC).Design/methodology/approachA questionnaire was designed and addressed to the general managers of the Jordanian companies making up the target population. Statistical techniques employed included confirmatory factor analysis and structural equation modeling (SEM) using AMOS 24 to test the hypotheses.FindingsThe results show that KMP influences IC, IC affects OP and KMP impacts OP through the mediator (IC).Research limitations/implicationsThe use of longitudinal data and comparisons with this study would provide further insights that would assist in generalizing knowledge related to the relationships among KMP, IC and Os' P.Practical implicationsIf organizations fully comprehend KMP and IC, they would be able to implement them successfully, creating value for their companies and improving OP.Originality/valueThe existing research on KMP and IC is primarily conceptual and descriptive in nature, and empirical research confirming the real impact of KMP when developing IC is lacking. Also. the relationship between innovation capabilities and OP has not been adequately studied. Hence, this study introduces a conceptual framework which integrates KMP, IC and OP and simultaneously empirically tests the relationships among them.